KEN-CARYL — Signs advertising roofing repair have popped up on street corners all over parts of Ken-Caryl after an Aug. 22 hailstorm pounded homes in the area.
And many houses have slabs of roof shingles piled atop roof peaks.
The service has been in high demand in south Jeffco, but according to some roofing contractors, it also created a potential for insurance fraud.
As a result of Senate Bill 38, also known as the Colorado Consumer Protection/Residential Roofing Bill, signed into law in June 2012, homeowners should know that roofing contractors are prohibited from paying, waiving or rebating an insurance deductible.
Luke Crespi, a Ken-Caryl Ranch resident, said roofers and their salespeople “swarmed” the area.
“In 18 years, I’ve never seen a roofing truck, but after the storm they were up and down every street,” Crespi said. He also said he thought it was typical for the roofers to pay the insurance deductible, but was told about the law by Dave Moore, owner of Smart Roofing in Centennial.
Crespi is set to have his roof fixed on Oct. 3.
Homeowners who have been assured by a contractor that they will pay a deductible (a Class 2 misdemeanor) should contact local law enforcement.
According to the Colorado Roofing Association, if it is proven a deductible was paid, waived or rebated, the insurance company does not have to consider the estimate from any contractor violating the provision.
Moore said after the August storm, he signed several contracts for roofing jobs.
“Then, all of a sudden, we started losing jobs,” Moore said.
He suspected it was because other contractors were offering to pay the deductibles.
“People don’t like to pay out of pocket, but if an insurance company did a spot audit, I don’t want to get in trouble,” Moore said.
Although he gets most of his work from referrals, he estimated his potential workload was cut by 10 to 15 jobs as a result of disreputable activity.
Rick Aryam, with First Avenue Construction, said, “I walk away when a customer says, ‘You’ve gotta pay my deductible.’ “
Aryam said his salespeople have said, “How do we compete when someone says, ‘I will take care of your deductible if you give me the job’?”
Aryam says often homeowners are not aware of the law and don’t understand it. He said provisions in the law allow for gutter upgrades and coupons, but he said the impact on honest roofers is that, “It takes food off the table.”
He was critical of the law and said it was lobbied by the insurance companies without a way to enforce it.
The Jefferson County District Attorney’s Office has prepared a list of tips homeowners should consider before they sign a home repair contract
Moore suggested people contact the Better Business Bureau or drive around the neighborhood and watch a roofing job in progress. He said word-of-mouth referrals are still a good way to select a contractor.
For information on Senate Bill 38, go to dpo.st/16nby12.
Karen Groves: 303-954-2303, kgroves@denverpost.com
